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MANAMA (Reuters) – Palestinians poured scorn on the Trump administration’s much-touted peace plan for the Israeli-Palestinian conflict on Wednesday, saying its framework for a trade and investment boost ignored their political aspirations for statehood.

Gulf states attending an international meeting in Bahrain, orchestrated by the plan’s architect, U.S. President Donald Trump’s son-in-law Jared Kushner, gave it qualified support.

But they also stressed that any peace settlement must be based on two-state solution.

Kushner told reporters his team would release the plan’s political details, which remain secret, “when we’re ready”, adding: “We’ll see what happens”.

He said a peace deal would happen when both sides are ready to say “yes”. He acknowledged that they may never get there.

Neither the Israeli nor Palestinian governments are attending the meeting, which takes place amid a years-long stalemate in other international efforts to resolve a conflict that has lasted more than 70 years.

Senior Palestine Liberation Organisation official Hanan Ashrawi, speaking in the West Bank city of Ramallah, said the Manama conference was “quite disingenuous”.

“It is totally divorced from reality. The elephant in the room is the (Israeli) occupation itself,” she told a news conference.

Several thousand Palestinians demonstrated in the Hamas-controlled Gaza Strip and burned posters of Trump and Israeli Prime Minister Benjamin Netanyahu. “No to the conference of treason, no to the conference of shame” read one banner.

The chief of the Islamist Hamas, Ismail Haniyeh, criticized the plan as a ruse against the Palestinian people.

“This money must not come at the expense of our enduring rights, or at the expense of Jerusalem or the right of return or at the expense of sovereignty and resistance,” he said.

The foreign minister of Bahrain said the plan, nearly two years in the making, was an “opportunity not to be missed”.

He reiterated the need for a two-state solution, which has underpinned every peace plan for decades, but Trump’s team has consistently refused to commit to it.

“I think if we take this matter seriously it could be a very important game-changer,” Sheikh Khalid bin Ahmed al-Khalifa told Israeli public broadcaster Kan in English.

Netanyahu, a close Trump ally, has said Israel was open to the economic proposals.

But many Arab states, including Lebanon, stayed away from the event while others including Jordan and Egypt, the two Arab nations that have reached peace agreements with Israel, sent deputy ministers.

The Lebanese government and parliament both oppose the U.S. plan, Prime Minister Saad al-Hariri said on Wednesday.

Randall Stephenson, Chairman and CEO, AT&T is seen during the “Peace to Prosperity” conference in Manama, Bahrain, June 25, 2019. Peace to Prosperity Workshop/Handout via REUTERS

HARD SELL

Washington hopes the wealthy Gulf states will bankroll the plan, which expects donor nations and investors to contribute $50 billion to Palestinian and neighboring Arab state economies.

Saudi Finance Minister Mohammed al-Jadaan said the kingdom would support whatever brings prosperity to the region but that it was important that it was driven by the private sector.

UAE Minister of State for Financial Affairs Obaid Humaid al-Tayer said: “We should give this initiative a chance”.

Riyadh said on the eve of the conference that any peace deal should be based on a Saudi-led Arab peace initiative that calls for a Palestinian state drawn along borders which predate Israel’s capture of territory in the 1967 Middle East war.

It also envisages a capital in East Jerusalem and refugees’ right of return – points rejected by Israel.

It is not clear whether the Trump team plans to abandon the two-state solution, which is backed by the United Nations and most countries. Kushner has said the plan would not adhere to the Arab initiative.

Any solution must settle long-standing issues such as the status of Jerusalem, mutually agreed borders, Israel’s security concerns, Palestinian demands for statehood, and the fate of Israel’s settlements and military presence in territory where Palestinians want to build that state.

Palestinian leaders are refusing to engage with the White House, accusing it of pro-Israel bias. Breaking with the international consensus, Trump in 2017 recognized Jerusalem as Israel’s capital, infuriating the Palestinians and other Arabs.

SOUND POLITICS

Former British Prime Minister Tony Blair also emphasized the need for a two-state solution and said peace required both political and economic tracks.

“It’s absolutely foolish to believe you can have economics without sound politics, but it’s likewise completely futile to think politics will work without economics buttressing it,” he told the gathering.

International Monetary Fund managing director, Christine Lagarde, said generating economic growth in conflict-riven countries can be a struggle.

The IMF puts unemployment at 30% in the West Bank and 50% in Gaza, which has suffered years of Israeli and Egyptian blockades and recent foreign aid cuts and sanctions by the Palestinian Authority, Hamas’ rival in the Israeli-occupied West Bank.

“Gaza right now is feeling a lot of pain because of bad leadership and the sanctions that have been imposed on them because of it,” Kushner said.

“So the question that (Hamas)leadership has to ask themselves is…do they hate their neighbor in Israel more than they love their citizens and their people?”

The 179 proposed infrastructure and business projects in the plan include a $5 billion transportation corridor to connect the West Bank and Gaza, which has been floated before and stalled for lack of underlying political or security agreements.

Palestinian businessman Ashraf Jabari, chairman of the Palestinian Business Network, told the gathering it was difficult to build an economy with a “siege and unstable situation”.

“Frankly, we demand an independent Palestinian state on the territories occupied by Israel in 1967,” said the businessman from Hebron, who has co-founded a trade group to boost business between Palestinians and Israeli settlers.

MANAMA (Reuters) – The Trump administration prepared to launch its $50 billion economic formula for Israeli-Palestinian peace in Bahrain on Tuesday but the Palestinian leadership reiterated its disdain for the plan and Saudi Arabia, envisaged as one of its main bank-rollers, also indicated some reservations.

Bahraini armoured vehicle takes up position on bridge leading to Manama’s Four Seasons hotel for first day of U.S.-hosted “Peace to Prosperity” conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

The two-day international meeting, led by Trump’s son-in-law and senior advisor Jared Kushner, has been billed as the first part of Washington’s broader political blueprint to resolve the Israeli-Palestinian conflict.

But the political details of the plan, which has been almost two years in the making, remain a secret. Neither the Israeli nor Palestinian governments will attend the curtain-raising event in Manama, which Lebanon and Iraq are staying away from.

Palestinian President Mahmoud Abbas, whose Palestinian Authority exercises limited self-rule in the Israeli-occupied West Bank, was scathing about its prospects of success.

“Money is important. The economy is important. But politics are more important. The political solution is more important.”

Washington will be hoping that attendees in Manama such as wealthy Gulf states will show a concrete interest in the plan, which expects donor nations and investors to contribute $50 billion to Palestinian territories, Jordan, Egypt and Lebanon.

Saudi Arabia – a close U.S. ally which shares a common foe with Israel in Iran – voiced support on Tuesday for “international efforts aimed at improving prosperity, investment and economic growth in the region”.

But Riyadh reiterated that any peace deal should be based on the Saudi-led Arab peace initiative that has been the Arab consensus on the necessary elements for a deal since 2002.

That plan calls for a Palestinian state drawn along borders which predate Israel’s capture of territory in the 1967 Middle East war, as well as a capital in East Jerusalem and refugees’ right of return – points rejected by Israel.

Kushner said the plan would not adhere to the Arab initiative. “It will be somewhere between the Arab Peace Initiative and between the Israeli position,” he told Al Jazeera TV in an interview to air on Tuesday.

Expectations for success are low. The Trump team concedes the economic plan – billed “Peace to Prosperity” – will be implemented only if a political solution to one of the world&rsquo;s most intractable conflicts is reached.

Jordan and Egypt, the only Arab states to have reached peace with Israel, are sending deputy finance ministers. Kushner’s plan has hit a political nerve in Jordan, home to millions of citizens of Palestinian refugee origin.

Saudi Arabia and the United Arab Emirates want to move on from a Palestinian conflict they believe has held back the Arab world. Other Gulf states such as Kuwait, Qatar and Oman have not said who they are sending to the conference.

“If there is a one percent chance we do something good here, we should get together and try,” billionaire Mohamed Alabbar, one of Dubai’s most prominent businessmen, said after arriving at the venue in Manama and embracing two American rabbis.

POLITICAL PLAN?

It is not clear whether the Trump team plans to abandon the “two-state solution,” which involves creation of an independent Palestinian state living side by side with Israel.

The United Nations and most nations back the two-state solution and it has underpinned every peace plan for decades.

But Trump’s team has consistently refused to commit to it, keeping the political stage of the plan a secret.

U.N. Secretary-General Antonio Guterres urged the pursuit of “peace efforts to realize the vision of two States, Israel and Palestine, living side by side in peace and security”.

Any such solution would have to settle long-standing issues such as the status of Jerusalem, mutually agreed borders, satisfying Israel’s security concerns and Palestinian demands for statehood, and the fate of Israel’s settlements and military presence in territory in Palestinians want to build that state.

In Gaza, businesses closed doors in a general strike called by the ruling Islamist Hamas group and other factions.

In the West Bank on the outskirts of Ramallah, where a small crowd of protesters was dispersed by Israeli troops firing tear gas, Palestinian lawmaker Mustafa Barghouti said: “There can be no economic solution as a substitute for our freedom.”

The workshop is being held in Bahrain, home of the U.S. Navy’s Fifth Fleet, at a time of heightened tension between Tehran and Washington and its Gulf allies. Trump on Monday imposed sanctions on Iran’s Supreme Leader and other officials after Iran downed an U.S. drone last week.

Palestinian leaders have boycotted the conference, and are refusing to engage with the White House – accusing it of pro-Israel bias. Breaking with international convention, Trump in 2017 recognized disputed Jerusalem as Israel’s capital – a move that infuriated the Palestinians and other Arabs.

Seven Palestinian businessmen gathered in the lobby of the Four Seasons hotel, the conference venue. They estimated that 15 to 20 Palestinian business representatives would be present.

“The politicians will not bring us anywhere,” said conference attendee Shlomi Fogel, an Israeli entrepreneur. “We, the business people, should be able to show them there might be another way.”

MANAMA/JERUSALEM (Reuters) – The first stage of President Donald Trump’s Middle East peace plan will be launched in Bahrain on Tuesday at a conference the White House touts as a bid to drum up $50 billion in investment but which Palestinians deride as an “economy first” approach doomed to fail.

The two-day international meeting, led by Trump’s son-in-law Jared Kushner, has been billed as the first part of Washington’s long-delayed broader political blueprint to resolve the Israeli-Palestinian conflict, to be unveiled at a later date.

But neither the Israeli nor Palestinian governments will attend the curtain-raising event in the Bahraini capital Manama.

And there will be close scrutiny as to whether attendees such as Saudi Arabia and other wealthy Gulf Arab states show any interest in making actual donations to a U.S. plan that has already elicited bitter criticism from Palestinians and many others in the Arab world.

Bahrain, a close American ally and home to the U.S. Navy’s Fifth Fleet, has been making preparations for weeks.

Though the event is supposed to focus on economics, Gulf Arab states hope it will also be used to show their solidarity with the Trump administration over its hard line against Iran, a senior Gulf diplomat said on condition of anonymity.

Under the plan, donor nations and investors would contribute about $50 billion to the region, with $28 billion going to the Palestinian territories – the Israeli-occupied West Bank and the Gaza Strip – as well as $7.5 billion to Jordan, $9 billion to Egypt and $6 billion for Lebanon.

Among 179 proposed infrastructure and business projects is a $5 billion transport corridor to connect the West Bank and Gaza.

“I laugh when they attack this as the ‘deal of the century’,” Kushner told Reuters, referring to the lofty nickname that Trump’s peace plan has assumed over the last two years.

“This is going to be the ‘opportunity of the century’ if they have the courage to pursue it.”

Kushner, a senior Trump adviser who like his father-in-law comes from the world of New York real estate, is presenting his plan in a pair of slick pamphlets filled with graphs and statistics that resemble an investment prospectus; in fact, he has repeatedly called it a “business plan.”

PEACE TO PROSPERITY

Expectations for success are low. The Trump team concedes that the economic plan – billed “Peace to Prosperity” – will be implemented only if a political solution to one of the world&rsquo;s most intractable conflicts is reached.

Any such solution would have to settle longstanding issues such as the status of Jerusalem, mutually agreed borders, satisfying Israel’s security concerns and Palestinian demands for statehood, and the fate of Israel’s settlements and military presence in territory in Palestinians want to build that state.

Hanging over the entire initiative are persistent questions about whether the Trump team plans to abandon the “two-state solution” – the long-standing international formula to bring about peace by creating an independent Palestinian state living side-by-side with Israel.

The United Nations and most nations back the two-state solution and it has underpinned every peace plan for decades.

But the Trump team – led by Kushner, Trump’s Middle East envoy Jason Greenblatt and U.S. Ambassador to Israel David Friedman – has consistently refused to commit to it, keeping the political stage of the plan a tightly guarded secret.

Israeli Prime Minister Benjamin Netanyahu, a close Trump ally, has his own domestic problems, facing an election, and possible corruption charges after a long-running police investigation. He denies any wrongdoing.

“We’ll hear the American proposition, hear it fairly and with openness,” Netanyahu said on Sunday. Although no Israeli government ministers will attend, an Israeli business delegation is expected.

But Palestinian leaders have boycotted the workshop, and are refusing to engage with the White House – accusing it of pro-Israel bias after a series of recent Trump decisions. Kushner told Reuters “some” Palestinian businessmen would be present but declined to name them.

Palestinian President Mahmoud Abbas, whose Palestinian Authority exercises limited self-rule in the Israeli-occupied West Bank, was scathing about its prospects of success.

“Money is important. The economy is important. But politics are more important. The political solution is more important,” he said.

Hamas, the Islamist militant group that controls Gaza, has found itself in rare agreement with its arch-rival Abbas.

“The Palestinian people only and no one else can represent the Palestinian cause,” Hamas official Mushir al-Masri said.

He said the Trump approach “seeks to turn our political cause into a humanitarian cause, and to merge the occupation into the region.”

Kushner said that even without the Israeli and Palestinian governments represented, the presence of Israeli businessmen and journalists with their counterparts from the Arab world would be significant at a time of rising tensions with Iran.

“People realize that the real threat to that region is Iran and their aggression, and Israel and a lot of the other Arab states have a lot more in common today than they did before,” he said.

David Makovsky, a Washington-based Middle East expert, agreed that although the principal focus of the event was the Israeli-Palestinian conflict, “Iran is higher on the chain of interest right now.”

But Makovsky, who the White House has invited as an observer, said the Trump/Kushner plan would ultimately succeed or fail on how it addressed the big underlying issues, not the money. “No one believes you can solve this thing economically without addressing the political issues.”

(Writing by Stephen Farrell. Additional reporting by Nidal al-Mughrabi in Gaza and Rami Ayyub in Ramallah.)

(Reuters) – The United States recorded 33 new measles cases last week, bringing the number of confirmed cases this year to 1,077 in the worst outbreak of the virus since 1992, federal health officials said on Monday.

The U.S. Centers for Disease Control and Prevention said the cases of the highly contagious and sometimes deadly disease rose 3% in the week ended June 20 from the prior week. The 2019 outbreak, which has spread to 28 states, is the worst since 1992, when 2,126 cases were recorded.

Health experts say the virus has spread among school-age children whose parents declined to give them the measles-mumps-rubella vaccine, which confers immunity to the disease. A vocal fringe of U.S. parents, some in New York’s ultra-Orthodox Jewish communities, cite concerns that the vaccine may cause autism, despite scientific studies that have debunked such claims.

The disease has mostly affected children who have not received the vaccine.

Measles was declared eliminated in the United States in 2000, meaning there was no continuous transmission of the disease for a year. Still, cases of the virus occur and spread via travelers coming from countries where measles is common.

CDC officials have warned that the country risks losing its measles elimination status if the ongoing outbreak, which began in October 2018 in New York, continues until October 2019.

The outbreak has escalated since 82 people in 2018 and more than 40 people in 2019 brought measles to the United States from other countries, most frequently Ukraine, Israel and the Philippines, federal officials said.

(Reporting by Gabriella Borter in New York and Ankur Banerjee in Bengaluru; Editing by Shailesh Kuber and Susan Thomas)

GAZA/RAMALLAH (Reuters) – Palestinians burned portraits of President Donald Trump as they protested in both the Gaza Strip and the Israeli-occupied West Bank on Monday against U.S.-led plans for a conference on their economy in Bahrain.

Many Palestinian business groups have said they will boycott the June 25-26 event, billed as part of Washington’s long-awaited Israeli-Palestinian peace plan and spearheaded by Trump’s adviser and son-in-law Jared Kushner.

“Down with Bahrain, down with Trump, down with the Manama conference,” chanted crowds in Gaza, which is ruled by the armed Islamist group Hamas. Some burned large paintings of Trump marked with the words: “Deal of the devil”.

Leaders in both territories have accused Washington of pro-Israel bias and railed against the conference’s focus on economics, rather than their aspirations for an independent state.

Kushner told Reuters on Saturday the plan would create a million jobs, halve Palestinian poverty and double the Palestinians’ GDP.

In the West Bank, hundreds marched through Ramallah’s main squares, waving posters in support of President Mahmoud Abbas, whose Western-backed Palestinian Authority exercises limited self-rule in the territory.

Protesters there burned posters of both Trump and Bahrain’s King Hamad bin Isa Al Khalifa.

The rallies marked a moment of political unity against the Bahrain conference, despite a 12-year political feud between Abbas’s Fatah party and Hamas.

“A WEDDING WITHOUT THE BRIDE”

“The Manama conference is a comedy show, a wedding without the bride (the Palestinians) … it will not succeed,” said a protester who gave her name as Siham in Gaza City.

The Bahrain conference will be attended by Gulf Arab states as well as Jordan and Egypt. Israel is expected to send a business delegation but no government officials.

Mahmoud Barhoush, 25, said he didn’t know whether to laugh or cry at what he called Arab states’ “treasonous” participation.

“Enough of your running into the arms of Trump and (Israeli Prime Minister Benjamin) Netanyahu,” he said at the Ramallah protest.

Other demonstrators criticized the lone Palestinian businessman named as an expected attendee in Bahrain, Ashraf Jabari. A U.S. official told Reuters that at least 15 Palestinians were expected to attend.

“Whoever attends is not a Palestinian and is not welcomed in Palestine. There should be measures taken against them,” said Maisoon Alqadoomi, 32, a Fatah activist from Ramallah.

Palestinian leaders on Monday renewed their calls for a boycott of the conference.

“This workshop is simply a political laundry for settlements and a legitimization of occupation,” Palestinian Prime Minister Mohammad Shtayyeh told journalists ahead of a cabinet meeting.

In Gaza, Hamas spokesman Hazem Qassem said: “They (Palestinians) will not sell out their rights for all treasures on earth”.

(Reporting by Nidal Almughrabi in Gaza and Rami Ayyub in Ramallah; Editing by Andrew Heavens)

CAIRO (Reuters) – The head of the Arab League warned on Monday that attempts to solve the Israel-Palestinian conflict will be in vain without the establishment of a Palestinian state on all territories occupied by Israel in the 1967 Middle East war.

Ahmed Aboul Gheit’s comments appeared directed at a still unpublished peace plan that U.S. President Donald Trump has dubbed the “deal of the century”. As part of the plan, a U.S.-led conference will be held next week in Bahrain on proposals for the Palestinian economy.

The Palestinian leadership is boycotting the conference, saying Trump’s peace plan is likely to be heavily weighted in favor of Israel and to quash their aspirations for statehood in the occupied West Bank and Gaza Strip.

While the precise outlines of the draft plan have yet to be revealed, Palestinian and Arab sources who have been briefed on it say it jettisons the two-state solution.

“Whatever is rejected by the Palestinian or the Arab side is unacceptable,” Aboul Gheit said during an event at the Arab League.

“What is acceptable from our side as Arabs as a solution is the establishment of a Palestinian state on the June 4, 1967 borders, with Jerusalem as its capital,” he added.

Based in Egypt, the Arab League is often seen as a talking shop rendered ineffective by regional rivalries, but it remains the main forum for Arab opinion on international matters.

Saudi Arabia and Egypt are its most influential members.

Aboul Gheit said that Israel’s acceptance of an Arab Peace Initiative drawn up by Saudi Arabia in 2002, which offers Israel normal ties in return for withdrawal from territory captured in 1967, was the only acceptable solution for Arab states.

“If (Israel) chooses the only reasonable and accepted way from our side as Arabs, which is the establishment of a Palestinian state … it will be accepted in the region as a normal regional partner,” he said.

Last week, a White House official said Egypt, Jordan and Morocco planned to attend the Bahrain conference.

Palestinians urged Egypt and Jordan to reconsider their attendance at the U.S.-led conference in Bahrain, voicing concern it would weaken any Arab opposition to Washington’s coming peace plan.

JERUSALEM (Reuters) – Israeli aircraft attacked a Hamas target in Gaza on Thursday after a Palestinian rocket strike, the Israeli military said, in the first serious cross-border flare-up since a surge in fighting last month.

The latest hostilities followed Israel’s closure of offshore waters to Gaza fisherman on Wednesday in what it said was a response to incendiary balloons launched across the frontier that caused fires in fields in southern Israel this week.

In a statement, the military said fighter planes attacked “underground infrastructure” in a compound belonging to the Hamas militant group that rules the Gaza Strip. There were no reports of injuries.

The military said it was responding to a rocket fired from Gaza overnight that was intercepted by the Iron Dome anti-missile system.

In two days of heavy fighting in early May, projectiles from Gaza killed four civilians in Israel, local health officials said, and Israeli strikes killed 21 Palestinians, over half of them civilians, according to Gaza health authorities.

A truce mediated by Egypt, Qatar and the United Nations ended that round of violence.

Some two million Palestinians live in Gaza, whose economy has suffered years of Israeli and Egyptian blockades as well as recent foreign aid cuts and sanctions by the Palestinian Authority, Hamas’s rival in the Israeli-occupied West Bank.

Israel says its blockade is necessary to stop arms reaching Hamas, with which it has fought three wars since the group seized control of Gaza in 2007, two years after Israel withdrew its settlers and troops from the small coastal enclave.

ZARIT, Israel (Reuters) – The Israeli army on Monday showed the inside of a sophisticated tunnel passing deep underground from Lebanon into northern Israel, saying it was intended for use by Lebanese Hezbollah militants.

The inside of a cross-border tunnel which Israel said was dug from Lebanon into Israel, is seen during a media tour organised by the Israeli military near Zar’it in northern Israel June 3, 2019. REUTERS/Gil Eliyahu

The tunnel was rigged with electrical wiring, fuse boxes and communications equipment. An army spokesman said it began almost a kilometer (mile) away inside Lebanon and reached depths of some 80 meters (265 feet) – about the height of a 22-storey building – as it crossed into Israel, near the town of Zarit.

It came to light earlier this year during an army operation in which a number of attack tunnels dug by Iran-backed Shi’ite Hezbollah were discovered and sealed off, the military said.

Hezbollah’s leader, in response to Israel’s tunnel operation, said in January that his group has been able to enter Israel for years. But he stopped short of acknowledging that the tunnels were the handiwork of Hezbollah, citing the heavily armed group’s policy of “ambiguity” on military matters and a desire to deny Israel a pretext to attack.

Israel and Hezbollah last fought a war in 2006. While they have at times traded blows within Syria and the Israeli-occupied Golan Heights, the Israel-Lebanon border has mostly been quiet.

Israeli Army Spokesperson, Lieutenant-Colonel Jonathan Conricus looks at during a media tour organised by the Israeli military inside a cross-border tunnel which Israel said was dug from Lebanon into Israel, near Zar’it in northern Israel, June 3, 2019. REUTERS/Gil Eliyahu

Israel regards Iran as its biggest foe and Hezbollah as the main threat on its borders. It has waged an increasingly open campaign of military strikes against them both in Syria, where they have fought on the government side in the civil war.

BEIRUT (Reuters) – The U.S. blueprint to end the conflict between Israel and the Palestinians, still in draft form after almost two years, is seen by Palestinians, and by some Arab officials and politicians, as a plan to finish off the Palestinian cause.

The initiative, driven by Jared Kushner, Donald Trump’s son-in-law and White House adviser, was billed by the U.S. president as the “deal of the century”.

While its precise outlines have yet to be revealed, Palestinian and Arab sources who have been briefed on the draft plan say Kushner has jettisoned the two-state solution – the long-standing U.S. and international formula that envisages an independent Palestinian state alongside Israel in the West Bank, east Jerusalem and Gaza.

After several postponements, Washington plans a first formal outing of the economic components of the plan at a “Peace for Prosperity” workshop in June in Bahrain.

The plan faces possible delays due to political upheaval in Israel, where Prime Minister Benjamin Netanyahu must fight another election after failing to form a government.

Kushner and Trump, with backgrounds in real estate rather than diplomacy, seem to be approaching this hitherto insoluble conflict as a transaction, three Arab officials briefed on the plan said.

If the politics keep failing, the reasoning seems to be, then try dangling tens of billions of dollars before the Palestinians and Israel’s Arab neighbors and do a deal that could unlock prosperity for the Palestinians and security for Israel, these officials said.

Politically, the deal envisages an expansion of Gaza into part of northern Egypt, under Egyptian control, Palestinian officials briefed on the plan told Reuters. Palestinians would be left with a smaller share of the West Bank and some areas on the outskirts of Jerusalem and no control over their borders. Western and Arab sources confirmed the outline of the plan.

Jason Greenblatt, Trump’s Middle East envoy, said “rumors” about an expansion into Egypt’s Sinai desert were false. He declined to give details of the political plan before it is released.

On the decision not to use the term “two-state solution”, Grenblatt said: “We believe that using certain phrases and labels is not helpful because they lack detail and nuance &ndash; they mean different things to different people. The detailed plan, once released, will show what we think may be best solution for the two parties.”

NOT BUYING IT

The Palestinians are not buying it.

“What we’re seeing from the plan is that it will blow up the Palestinians,” one Arab official told Reuters. “The plan doesn’t give justice to the Palestinians.”

“The Palestinian cause is being liquidated – no Jerusalem (as capital), no right of return for refugees, no sovereign state. That is why this American project is dangerous,” one senior Palestinian leader told Reuters.

The deal as outlined so far has been dismissed by President Mahmoud Abbas’ western-backed Palestinian Authority in the Israeli-occupied West Bank.

Abbas has boycotted political dealings with the Trump administration for 18 months. This followed Trump’s decisions in 2017 to recognize Jerusalem as Israel’s capital and move the U.S. embassy there from Tel Aviv.

&nbsp;&nbsp;&nbsp; Since then, the Trump administration has curtailed aid to the Palestinian Authority, shuttered the Palestine Liberation Organisation (PLO) delegation in Washington and cut off finance to UNRWA, the U.N. agency supporting Palestinian refugees. Washington meanwhile endorsed Israel’s sovereignty over the Golan Heights.

“In practice, they have already started implementing ‘the deal of the century’,” the senior Palestinian leader said, “on the ground, step by step”. “Today, the two-state solution has been scuttled”. Abbas is not alone in his view of the U.S. deal.

It was rejected by the Islamist Hamas movement, which does not recognize Israel’s right to exist and has only given conditional consent to a state in the occupied Palestinian territories.

The PLO has dismissed the Kushner effort as an attempt to bribe Palestinians into accepting Israeli occupation of the West Bank, a prelude to Israel annexing about half their territory and leaving them with scattered cantons.

Hanan Ashrawi, a moderate Palestinian leader, tweeted that the Kushner plan and the Bahrain conference were just “a handout to make our captivity palatable”.

Palestinian businessmen have opposed the Bahrain gathering despite a plea by Washington to attend, saying their political demands must be addressed in any peace plan.

Qatar said economic prosperity cannot be achieved without political solutions acceptable to Palestinians. Oman said anything that precludes the establishment of a Palestinian state will not be acceptable.

“We are not proposing an economic peace,” Greenblatt said. “We know that is not acceptable to the Palestinians. We’ve been very clear that the full plan includes a political component as well. But the economic plan is an essential component to the full plan.”

MOVING ON

Robert Satloff, executive director of the Washington Institute for Near East Policy, an influential think-tank and supporter of Israel, wrote after interviewing Kushner this month that the deal is a political disaster that should be abandoned.

He said positive economic proposals could be lost by the attempt to skirt around Palestinian rights.

“The only way to protect the long-term viability of the plan’s best aspects is to kill it,” he said.

Satloff wrote that “unlike a real estate transaction in which one party gets the property and the other party gets the cash, a Middle East peace deal starts and ends with the two parties as neighbors, stuck with each other sharing a duplex for eternity”.

Kushner meanwhile visited the Middle East this week seeking support for the June 25-26 Bahrain conference.

The meeting is to talk about the cash. The U.S. plan expects almost all of this “$50 billion to $70 billion” to be put up by Gulf Arab allies, Saudi Arabia and the United Arab Emirates, Palestinian sources said. Yet even that is now moot.

Saudi Arabia, under Crown Prince Mohammed bin Salman, and the UAE, under Abu Dhabi Crown Prince Mohammed bin Zayed, want to move on from a Palestinian conflict they believe has held back the Arab world.

That means uniting with Israel against Iran and concentrating on domestic challenges such as economic reforms and confronting Islamist radicals.

The Saudi crown prince maintains close ties with Kushner. But his father, King Salman, has twice said there will be no deal unless Israel meets Palestinian rights to a state.

“Kushner has been taken by surprise in his meetings in Riyadh recently, where there has definitely been a change in tone &ndash; in private and in public &ndash; by the Saudis,” said a senior western diplomat.

Asked for comment, the White House referred to its earlier official statement on Kushner’s February meeting with the crown prince and the king which said they discussed “increasing cooperation” and efforts to facilitate peace between Israelis and Palestinians.

NEW REALITY

The Palestinian official said it is clear that Israel “is creating a new reality on the ground” with the Trump administration’s help &ndash; not least by paving the way for the annexation of Jewish settlements in the West Bank.

The Palestinian and Arab officials briefed on the Kushner- Trump plan said its political contours, as explained to them, look like non-starters unless there is a peace deal.

The essential part is Gaza: where 2 million Palestinians are shut into a strip between Israel and Egypt. The idea is to expand it into the north of Egypt’s Sinai peninsula, creating an area where Palestinians can live and work under Egyptian control.

“The plan envisions Gaza stretching from Rafah (its southern border) to El Arish and some parts of Sinai. This area will be a Palestinian expansion in which Palestinians can reside,” the Palestinian leader said.

Big projects, such as an airport, a seaport, an industrial zone and power stations are envisaged, Palestinian sources briefed on the plan said.

On the West Bank, the plan is for Israel to annex and join up the settlements, take the Jordan valley and make it the Israeli border with Jordan, and leave the Palestinians a bit less than half as “an autonomous mini-state under some form of self-government”, the senior Palestinian leader said.

As for Jerusalem, Palestinians would get neighborhoods on the outskirts such as Abu Dis and Beit Hanina and Silwan: “not the real Jerusalem (but) they will tell them this is your Jerusalem”, the Palestinian leader added.

Western diplomats and intelligence sources worry about how the plan might affect Egypt and Jordan. However much money is offered, these sources question whether Egyptians would happily relinquish territory.And Jordan fears a Trump-backed Israel is returning to an old theme: Jordan is Palestine and that is where the Palestinians of the West Bank should go, they say.

JERUSALEM (Reuters) – Israeli lawmakers voted early Thursday to dissolve parliament and set the country on the path to a second election within months after right-wing Prime Minister Benjamin Netanyahu failed to put together a ruling coalition before a midnight deadline.

In April Netanyahu appeared set for a fifth term after his Likud Party won 35 of the Knesset’s 120 seats, even though he faces possible indictment in three corruption cases. He has denied any wrongdoing and accused his opponents of mounting a witch-hunt.

But despite weeks of negotiations he failed to overcome divisions between secular and religious allies and in the early hours of Thursday, parliament voted by 74-45 to dissolve itself. Another election could be held in September.